Hi there,
Is there any way of using a credit card to pay off mortgage repayments, so I can earn points on my card. For example if I put my money into the credit card account, so it had positive funds and then used the card to pay off the mortgage repayment. Or does Commonwealth Bank not allow this??? Thanks for your replies…
I would have thought that payments on a credit card into a mortgage would be classed as a cash advance – regardless of whether you had already loaded your credit card up with the funds. You don't get points for cash advances. Give them a call and ask…
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Yep, JacM is correct – as you can't Bpay a home loan, that would mean it would be treated as a cash advance – which is firstly the worst way to use a credit card other than in emergencies, and as mentioned, does not get you points (but it does in most cases get you paying a higher rate of interest and void your interest free period!)
Cheers
If what your trying to do is earn credit points on your creditcard, an option you have is to deposit all your earnings into your mortgage and live off your creditcard (earning credit points) and pay it in full out of your mortgage each month. You would have to get a loan set up that gave you that facility and also you would have to be quite diciplined to make sure less goes out than you put in!
On this topic, are there any real estate agents that accept credit card for property purchase deposits? I really fancy the idea of earning half a holiday worth of frequent flyer points for my troubles of purchasing a property.
If anyone knows of any agencies that accept credit cards for this purpose, I would love it if you could list them here!
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Napiers Financial Services Group PTY LTD wrote:If what your trying to do is earn credit points on your creditcard, an option you have is to deposit all your earnings into your mortgage and live off your creditcard (earning credit points) and pay it in full out of your mortgage each month. You would have to get a loan set up that gave you that facility and also you would have to be quite diciplined to make sure less goes out than you put in!
Make sure you don't do this if your mortgage is deductible.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
JacM wrote:On this topic, are there any real estate agents that accept credit card for property purchase deposits? I really fancy the idea of earning half a holiday worth of frequent flyer points for my troubles of purchasing a property.If anyone knows of any agencies that accept credit cards for this purpose, I would love it if you could list them here!
I doubt there would be any for 2 reasons:
1. They have to pay a fee on the transation. I think it is around 2%2. The deposit would need to go straight into a trust account.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Don't forget that if you want to earn cc points, then don't let the agents pay your bills, but pay them yourself using your credit card. After you have a few properties it can all add up – rates, water, insurance etc.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Good point. Thanks Terry!
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi Terryw,
Thanks for your comment – Make sure you don't do this if your mortgage is deductible. Please explain this in more detail as I am interested to learn more.
Cheers…
propertymistro wrote:Hi Terryw,Thanks for your comment – Make sure you don't do this if your mortgage is deductible. Please explain this in more detail as I am interested to learn more.
Cheers…
Lets go thru it.
What happens when you deposit money into an investment loan and then redraw it again?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terryw,
But couldn't I have an !00% offset account set up and I pay my credit card bill through my offset account. Rather than redrawing it out of the home loan.
propertymistro wrote:Hi Terryw,But couldn't I have an !00% offset account set up and I pay my credit card bill through my offset account. Rather than redrawing it out of the home loan.
Yes, thats the way to go.
If you were to keep paying your wages/rents into the loan and then withdraw living expenses each week you will be rapidly decreasing the deductible portion of your loan and could end up with a large loan, but none of it being deductible.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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